Anderson v. Anderson's Trustee [1901] ScotLR 39_94 (13 November 1901)

Anderson v. Anderson's Trustee [1901] ScotLR 39_94 (13 November 1901)

A trustee found liable in expenses to a successful claimant (not a beneficiary) is personally liable for those expenses and cannot deduct them, nor his own litigation expenses, from the trust estate before calculating the claimant's jus relictæ. The estate must be divided without such deductions, and only the beneficiaries' shares may bear the trustee's expenses, not the successful claimant's share.

Citation
[1901] ScotLR 39_94
Parties
Pursuer and Reclaimer: Mrs M. R. Moon or Anderson; Defender and Respondent, Sole Remaining Trustee Under Dr Anderson's Settlement: Donald Anderson
Jurisdiction
Scotland
Judgment Date
13 November 1901
Procedural Posture
Civil (trust/estate Litigation) / Appeal (reclaiming Note) From Lord Ordinary to Inner House, First Division
Outcome
Appeal allowed; interlocutor of Lord Low (2 March 1901) recalled; trustee found personally liable for expenses; trustee not entitled to deduct litigation expenses from estate before calculating jus relictæ.
Legal Topics
Personal Liability of Trustees, Expenses in Litigation, Jus Relictæ, Deduction of Expenses From Estate, Trust Administration
Trusts and Estates Succession Law Civil Procedure Personal Liability of Trustees Expenses in Litigation Jus Relictæ Deduction of Expenses From Estate Trust Administration

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Parties

Mrs M. R. Moon or Anderson

Pursuer and Reclaimer

Donald Anderson

Defender and Respondent, Sole Remaining Trustee Under Dr Anderson's Settlement

Procedural Posture

Civil (trust/estate Litigation) / Appeal (reclaiming Note) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Is a trustee personally liable for expenses awarded against him in litigation with a non-beneficiary?
  2. 2 Can a trustee deduct litigation expenses (including those he is found liable for) from the trust estate before calculating the widow's jus relictæ?

Ratio Decidendi

A trustee found liable in expenses to a successful claimant (not a beneficiary) is personally liable for those expenses and cannot deduct them, nor his own litigation expenses, from the trust estate before calculating the claimant's jus relictæ. The estate must be divided without such deductions, and only the beneficiaries' shares may bear the trustee's expenses, not the successful claimant's share.

Court Disposition

Appeal allowed; interlocutor of Lord Low (2 March 1901) recalled; trustee found personally liable for expenses; trustee not entitled to deduct litigation expenses from estate before calculating jus relictæ.

Orders

  • Trustee to pay pursuer £3458, 3s. 9d. with interest at 5% per annum from 29 February 1896, less £2000 already paid with interest from 2 August 1900.
  • Trustee found liable in expenses in both Outer and Inner House, subject to possible modification by Lord Ordinary upon Auditor's report.